Oil Prices Spike as Strait of Hormuz Disruptions Escalate

Global oil prices surged on July 31, as fears over supply disruptions grew. Brent futures rose $1.09, or 1.2%, to settle at $90.12 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed $1.08, or 1.3%, to finish at $84.67 a barrel.

The rally was driven by reports that tankers were forced to turn back in the Strait of Hormuz due to ongoing conflict involving Iran. The strait previously handled roughly twenty percent of global petroleum and natural gas supplies, resulting in millions of daily barrels of Middle Eastern exports being disrupted.

Analyst Ole Hvalbye noted that market focus has shifted from political rhetoric to physical trade metrics: 'The market has stopped trading the war and started trading the shipping data.'